Use Excel to do the following steps of exercise

1.In the Table below I have given you a bond with Coupon = YTM initially (columns 1 and 3). Then, in Col 2, I am increasing the time to maturity. Calculate the Duration for each maturity and report them in Col 4. Assume annual coupon cash flows.

2. In the next part of this question, I have reduced YTM to 6.75% (in Col 5). For the same maturities, now calculate the durations and report in Col 6. Once you have done that answer the following questions:

Col 1	Col 2	Col 3	Col 4	Col 5	Col 6
CPN%	MATURITY	YTM%	DUR	YTM%	DUR
11.75	3	11.75		6.75
11.75	7	11.75		6.75
11.75	10	11.75		6.75
11.75	20	11.75		6.75
11.75	30	11.75		6.75

(a) What is the relationship between duration and time to maturity based on Col 4 results?

(b) What do you conclude about duration when comparing Col 4 to Col 6 results